by Distilled spirits are alcoholic beverages that are produced by distillation of fermented products such as grapes, sugar cane, barley, potatoes, wheat and fruits. Distilled spirits contain higher percentage of alcohol content which provides relief from health issues such as common cold, joint pain, cough and insomnia when consumed in moderation. Whiskey, rum, brandy, vodka and tequila are some of the common types of distilled spirits consumed globally. The high alcohol content and stimulating effects of distilled spirits make them the preferred alcoholic drink among millennials and generation Z for social gatherings and occasions.
The global Distilled Spirits Market is estimated to be valued at US$ 36.86 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The distilled spirits market is witnessing increasing demand for premium and craft spirits varieties. Consumers are increasingly opting for spirits that are produced using sustainable practices and local ingredients. Spirits producers are focusing on introduction of new flavors along with experimenting with aging techniques to attract millennial consumers. Furthermore, growing mixology culture and rising number of bars and pubs is fueling the demand for unique cocktail recipes using different types of distilled spirits. Industry players are expanding their e-commerce presence and leveraging social media platforms to target young consumers. The rising health consciousness is also spurring the growth of low-calorie and low-carb distilled spirits infused with natural ingredients.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the distilled spirits market is a highly regulated market and requires high capital investments to enter.
Bargaining power of buyers: The bargaining power of buyers is medium as there are many established brands for consumers to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is medium as there are many raw material suppliers in the market.
Threat of new substitutes: The threat of new substitutes is low as there aren’t many viable alternatives to distilled spirits.
Competitive rivalry: High due to the presence of many global and regional players.
Key Takeaways
The Global Distilled Spirits Market Size is expected to witness high growth over the forecast period.
North America is expected to hold the largest share in the market owing to rising disposable income and changing consumer preferences. Europe is also expected to grow at a significant rate in the market.
Key players operating in the distilled spirits market are Coloplast Corp, ConvaTec Inc., and Hollister Incorporated. Key players are focusing on new product launches and expansion strategies to gain a competitive edge in the market.
